agent to “manage” both sides of the transaction is dealing with an agent who has conflicting responsibilities. Their job is to get a good price for the seller, meaning they might not ambitiously represent the buyer’s interests. The seller agent must disclose only the required disclosures called "Material Latent Defects". These defects are of great expense to remedy, missing permits, or can cause the property to have health risks such as mold. Other defects known as "Patent Defects" can be discovered through a reasonable inspection of the property but often do not get noticed by buyers. For example: Windows, cracks in concrete, mechanical, Poly B Piping, etc. Many buyers are quite surprised to learn that deaths in homes are not a required disclosure in Alberta. Also, any available public information that may be deemed negative is not required to disclose either. Example: The seller may have an encroachment agreement registered on title with the city. These agreements always have a caveat attached clearly stating the city can give you a 30-day notice to remove the encroachment. Can you imagine if the garage was encroaching and the city came along and told you to move it? That would certainly be expensive if you didn't have title insurance . In Alberta there are two ways for a seller's agent to deal with an unrepresented buyer: • Client Relationship • Customer Relationship It's required of every licensed agent to provide accurate information about the property they represent regardless of whether the buyer is a client or a customer but only in a client relationship can the seller's agent give the buyer advice. The seller's agent also must give the sellers permission in writing to provide advice to the buyer before they are allowed to. You can see how it quickly this becomes complicated not to mention the inherit conflict of interest the seller's agent is in. Those who market themselves as buyer’s agents indicate they’re only working for the buyer in a real estate transaction. If any 4
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